AGI US and its former portfolio managers committed an “egregious, long-running, and extensive scheme to defraud investors. Their fraudulent scheme went undetected for years, according to the Justice Department.
In a statement, U.S. Attorney for the Southern District of New York, Damian Williams said, “As alleged, Gregoire Tournant and his co-conspirators lied to investors and secretly exposed them to substantial risk in order to line their own pockets and those of their employer, AGI.”
On the other hand, SEC Chairman Gary Gensler said, “Allianz Global Investors admitted to defrauding investors over multiple years, concealing losses and downside risks of a complex strategy, and failing to implement key risk controls.”
Meanwhile, Allianz SE, the parent company of Allianz Global Investors U.S., said the criminal misconduct regarding the Structured Alpha Funds was limited to a handful of individuals,” who are no longer working for the firm.
Additionally, Allianz SE stated that the Justice Department’s investigation did not find evidence that it had any knowledge and participation in AGI US’s misconduct.
